Ah, yes, 2100 iron fly coming in… come to papa!
Daily Archives: Wednesday, April 20, 2016
Closing a KOLD position
Bought to close $KOLD May 20 320 call @ .50. Sold for 8.90 on 3/24/16.
$NUGT
What a ride today.
#VXXGame
The only interesting thing I can say about today is that VIX, VXX, and UVXY are down, but have moved straight across since the early morning drop. Days like these often lead to a very sharp, steady plummet in UVXY, but not today. VIX reached new lows today, surpassing October’s low, but also has been straight across since morning. All of they while SPX has drawn a perfect 45 degree line UP since about 11am ET.
What does it mean? I don’t know what anything means in this market lately.
$SPX: What do we do…
$SPX: What do we do in a market like this?
Add more short delta!
Sold to open $SPX Jun 3 2195/2220 call spreads @ 1.30. Short strike is just inside 1 standard deviation (=2199).
UVXY: Taking some more January risk off
Without any great opening trade opportunities I thought I’d look for ways to continue reducing my overweight January short call positions in UVXY. The position is now getting more manageable in the event of a huge spike in the VIX/UVXY. I may leave the rest to expire so I don’t take the tax hit until 2017 (and not have to pay the tax bill for 2 more years) but I’ll see how it goes.
Bought to close $UVXY Jan 20 2017 170 call @ .85. Sold for 13.80 on 1/8/16.
Bought to close $UVXY Jan 20 2107 95 call @ 1.75. Sold for 19.00 on 8/21/15.
UA earnings
#Earnings This could be a viable trade if you’re willing to take stock… selling 40 puts for .50, or any other bullish play. That would be a 9.1% down. UA’s biggest recent down move was 7.3%, and it often pops up big, like 22% up last quarter. Chart looks pretty bullish, with a daily squeeze, and entering a weekly squeeze.
Frustrating market
With the VIX this low short premium trades are so hard to find. I keep having to stop myself from forcing things (i.e., putting on trades that deep down I know aren’t paying me enough for the risk). I had hopes that earnings season would provide some opportunities but I can’t really find any earnings trades with any meat on the bone. Maybe it’s a sign that I probably should just pack it in for the day and get back to my day job. 🙂
NUGT roll
Rolled $NUGT Apr 22 90 call up and out to May 6 100 call for 1.52 credit. Depending on the action the rest of the day, I may roll my 95 call up and out as well.
NFLX earnings
#Earnings Bought to close $NFLX Apr 22nd 90 puts for .10. Sold for .60 on Monday. Still holding 90 puts expiring Apr 29th, GTC order in to close for .10.
SPX puts closed
#SPXcampaign Bought to close $SPX May 13th 1890/1865 put spreads for .20. Sold for 1.40 on April 11th.
Today $VIX hit its lowest…
Today $VIX hit its lowest level since mid-August (right before the storm)
SPX iron butterfly
#IronButterfly Too Mort’s idea, but trying with options expiring TONIGHT:
Sold to open $SPX Apr 20th 2090/2100/2110 iron butterfly for 5.50.
Breakevens at today’s close are 2094.50 and 2105.50.
Buy (1) 2090 put
Sell (1) 2100 put
Sell (1) 2100 call
Buy (1) 2110 call
Also trying for same spread expiring this Friday for 8.00. And in smaller accounts, trying for 209/210/211 $SPY spread for .80
Thanks, Mort!
SPX puts sold
#SPXcampaign Sold to Open May 19th 1975/1950 put spreads for 1.25.
Jeff what do you think about an IBF on SPX at 2100?
can get 8.00 on a 10 wide
$NUGT
$NEM reports after the bell tonight. I think they are the first of the gold miners to report. Could move $NUGT big either direction. With as strong as they have been (much stronger than Gold itself) we’ll see just how much good news is already priced in.
JNJ earnings
#Earnings This trade looks to be a bust. It will cost 2.00 to close the ITM call spread; after the 1.50 credit we took in, that’s a 50-cent loss (ignore the puts, they will expire worthless). It may be possible to close it for less than 2.00 if there is any pullback, so keep an eye on it for the rest of the week. Sorry this one didn’t work out!
Options Bistro 